Marathon Petroleum Corporation (NYSE: MPC) reported a 5% increase in earnings for the second quarter of 2019 helped by higher revenue despite EPS falling by 27% on higher weighted average shares. The results exceeded analysts’ expectations.

Net income rose by 5% to $1.11 billion while earnings plunged by 27% to $1.66 per share due to higher weighted average shares. Adjusted earnings dropped by 24% to $1.73 per share. Total revenues soared by 50% to $33.69 billion.

Looking ahead into the third quarter, the company’s refinery throughputs outlook from refining and marketing segment was 3,050 mbpd. In the refining and marketing segment, refining operating costs per barrel are predicted to be $5.90 and distribution costs are projected to be $1.3 billion. In the retail segment, speedway fuel sales are anticipated to be 2,525 to 2,675 millions of gallons and merchandise sales are expected to be $1.625 billion to $1.725 billion.

Marathon Petroleum Q2 profit rises 5%, beats estimates

In the second quarter, the company realized $270 million of synergies. Combined with first-quarter results, the company has realized $403 million of synergies year-to-date. Marathon’s progress gives it great confidence in achieving the target of up to $600 million of annual gross run-rate synergies by year-end 2019 and $1.4 billion by the end of 2021.

In the retail segment, Speedway continues to expand its brand through store conversions. As of June 30, 2019, Speedway had completed 237 store conversions in 2019, bringing the total number of conversions since the combination with Andeavor to 407. The company remains on track to complete 700 total cumulative store conversions by the end of 2019 including locations in the Southwest and on the West Coast.

Also read: Sprint Q1 earnings preview

Among the other energy firms, Chevron (NYSE: CVX) is set to release its second-quarter earnings results on Friday, August 2. Last week, ConocoPhillips (NYSE: COP) posted a decline in earnings due to the settlement of certain tax disputes and amounts recognized from the PDVSA International Chamber of Commerce settlement.

Shares of Marathon Petroleum ended Wednesday’s regular session down 1.16% at $56.39 on the NYSE. Following the earnings release, the stock rose over 1% in the premarket session.

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